NEW BRITAIN - City manufacturing giant Stanley Black & Decker on Thursday confirmed it has completed its purchase of the Craftsman brand from Sears Holdings Corp. The approximately $900 million cash transaction gives Stanley Black & Decker the right to develop, manufacture and sell Craftsman-branded products outside the Sears Holdings and Sears Hometown & Outlet Stores distribution channels.
“We are pleased to complete the purchase of the Craftsman brand, a legendary American brand with tremendous consumer awareness built on a legacy of providing reliable products at a good value and standing behind them,” said James M. Loree, Stanley Black & Decker’s president and chief executive officer, in a statement on Thursday. “We will invest in the brand with a focus on quality, innovation and U.S. manufacturing, with the goal of rapidly increasing sales through new channels and will provide more information on our distribution plans as they are developed.”
As detailed in its initial announcement about the acquisition on Jan. 5, Stanley Black & Decker has made a $525 million cash payment to Sears Holdings at closing and will make a $250 million payment at the end of year three and annual payments to Sears Holdings of between 2.5 and 3.5 percent on new Stanley Black & Decker sales of Craftsman products through year 15.
Stanley posted sales of $11.41 billion in 2016, with profits up 9 percent to $965.3 million, or $6.61 per share.
The company also validated in a regulatory filing on Wednesday that it paid more than $29 million to its current and former CEOs last year.
John Lundgren, 65, who retired in July after 12 years in the chief leadership role, grossed close to $5.7 million in salary in his final year with the company. In addition, he was awarded an unspecified cash bonus, contributions to a retirement plan and compensation including use of a company plane and upkeep of a home security system.
The document reports that Lundgren received $15.3 million after exercising stock options and vesting.
Loree, 58, succeeded Lundgren as CEO. He reportedly received $2.8 million in salary and bonuses, as well as other compensation including, in part, contributions to a retirement plan. His exercised stock options and vesting totaled $5.6 million.
Loree has been with Stanley Black & Decker since 1999 and had served as president and chief operating officer prior to his current role.
Stanley Black & Decker, which traces its roots in New Britain to 1843, bills itself as the world’s largest tools and storage company. It employs more than 52,000 people in 50 countries.
Christopher Fortier can be reached at 860-801-5063 or firstname.lastname@example.org.